WASHINGTON - The U.S. Department of Agriculture (USDA) has imposed restrictions on two PACA violators in Illinois and California for failure to pay reparation awards, according to a USDA press release.

According to the release, the following individuals and businesses are currently restricted from operating in the produce industry:

• Gregory Hall, doing business as Virtue Cider, operating out of Chicago, Ill., for failing to pay a $108,024 award in favor of a New Hampshire seller. As of the issuance date of the reparation order, Gregory Hall was listed as the sole proprietor of the business.
• Grana Trading Inc., operating out of Los Angeles, Calif., for failing to pay a $58,745 award in favor of a Texas seller. As of the issuance date of the reparation order, Roberto Grana and Marina Valladares were listed as the officers, directors, and/or major stockholders of the business.

PACA provides an administrative forum to handle disputes involving produce transactions which could result in a reparation order being issued that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principles determined to be responsibly connected to the business when the order is issued. Those individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders may not be employed by or affiliated with any PACA licensee without USDA-approval.

In the past three years, USDA resolved approximately 4,250 PACA claims involving more than $77 million. USDA experts have also assisted more than 7,000 callers with issues valued at approximately $110 million. Individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders may not be employed by or affiliated with any PACA licensee without the approval of the USDA. The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA.

BAKERSFIELD, CA - A new norm appears to be forming when it comes to the California grape season. Rob Spinelli of Anthony Vineyards took the time to talk with me about what’s happening with grape growth, varieties, and what is shifting within the industry.

“The main start [of the season] will be early May,” Rob tells me, saying that they had actually anticipated it could have been the last week of April, but the weather had cooled off for a period that kept the season close to the same starting point as last year. “We will probably see volume on flames the week of May 11, out of Coachella.”

The much-anticipated organic flames and sugraones are finally around the corner, and Anthony Vineyards is excited to have them for the market as early and long as possible. The company is currently starting out with sugraones and flames varieties, though he said we could see the front end of the sugraones get a little tight for about a week.

“We are looking at May 6th for organic flames, then the following week for organic sugraones,” Rob said, telling me that Coachella grapes will continue through to the 4th of July, while the San Joaquin Valley could get a slightly early start, somewhere between June 25 to 29. The company will be able to provide both organic and conventional grapes through December. “We have the ability to load both at the same location throughout the season,” Rob tells me, an offer not many California grape growers can provide.

While this would traditionally be early for grapes, Rob tells me this is actually pretty consistent for the past few seasons.

“It’s about the same as the last three years, so we won’t see a gap in the supply chain,” Rob told me, adding that he anticipates an easy flow in transition, though there might be a small spike in price on reds as Mexico finishes around the middle of June.

In fact, when it comes to challenges so far in the season, the main thing to be aware of on the buy-side is that the rise in costs for water from the dry weather and the changes in labor could reflect in grape prices.

“We could see higher FOB’s due to water and labor costs,” Rob tells me. “Water is an issue in Coachella, but not as much as in the San Joaquin Valley. And everything in regards to labor costs is going up. People want to start and stay with you for the whole season, and the crop isn't always ready. So you have to find work to keep them busy.”

Because these changes are more consistent than the one season, it could be a transition rather than an anomaly in the grape industry. However, it is looking to be a fruitful season, so keep your eye out for organic options to come in soon.

Anthony Vineyards

TORONTO, CANADA - Sysco Canada has agreed to acquire Ottawa-based broadline foodservice distributor Tannis Trading, Inc..

The cost of the acquisition was not disclosed, but Tannis Trading’s most recent financial report valued the company’s revenue at approximately C$118 million ($99 million). The transaction's completion is also still subject to review by Canadian regulatory agencies. 

"Tannis has a 75-year history of providing quality service to customers in Ottawa, Canada's fourth-largest metropolitan market, and the surrounding areas," said Randy White, President of Sysco Canada. "This acquisition demonstrates Sysco's commitment to better serve our customers, improve our service footprint, grow our business and achieve our goal of increasing sales in Canada."

Founded in 1940 by a family of Lebanese immigrants, Tannis has been growing rapidly in the past few years with multiple acquisitions. Tannis now encompass all aspects of the food service industry, including fine dining and family restaurants, multi-unit chains and fast food operations, hospitals and institutions, convenience stores, and seasonal recreational facilities.

Upon completion of the transaction, Tannis’ Ottawa distribution facility will remain in place, along with the existing employees and management team, according to a press release.

Sysco most recently has attempted a merger with US Foods, and as we have previously reported, the FTC is currently in pursuit of legal action that would block the merger on the grounds of antitrust law violations, stating that the two companies are too large in the foodservice industry to be united.

Stay tuned to AndNowUKnow for all the updates on the growing company.

Sysco

SAN DIEGO, CA - Cultivating women’s potential… that was the goal this week as industry members gathered at the Loews Coronado Bay Resort in San Diego, California for the 3rd annual PMA Foundation Women’s Fresh Perspectives Conference. I was one of this year’s newbies and can’t tell you enough how much the event offered and affected me, as a writer, a woman, and a professional.

The three-day event was complete with concurrent workshops that included Woman Up!: Overcome the 7 Deadly Sins that Sabotage Your Success with Aimee Cohen and He Sells/She Sells: The Truth About Gender Selling with Colette Carlson.

Each experience offered insights into developing female leadership while recognizing the challenges that stand in our way and forming strategies to address them.

Dan'l Mackey Almy, President and CEO of DMA Solutions, reflected on the event and told me, "A focused event like Women's Fresh Perspective is important because professional and personal development is a constant need.  By having an event specific to women, the PMA Foundation is able to provide a unique learning environment that fosters connections through commonalities that advance the education process."

"An exciting movement is happening in our industry and it's incredible to be a part of that," Leslie Simmons, Marketing Manager, Dave's Specialty Imports tells me. "I am absolutely thrilled walking away from the Women's Fresh Perspectives Conference. It has once again provided a forum unlike any other in our industry. The energy was palpable and the educational sessions were transformative for me, both personally and professionally." 

Networking Breakfasts and Strolling Dinner Receptions allowed attendees to meet a range of industry women, from emerging leaders to executives and beyond. The newly introduced executive track was also a popular element to the program this year and offered content geared to those on the executive track. The two sessions Overcoming Your Leadership Derailers – Tactics that Get Results and It’s Lonely at the Top – Building a Community of Support both sought to address the challenges and hurdles that women at the top are confronted with, as well as those issues that can be encountered along the way.

In addition, the PMA Foundation introduced a new mentoring program that was designed during the conference with participating executives and will offer participants a blended approach to mentoring, customized to the needs of all and will incorporate all facets of mentoring approaches. Stay tuned to learn more about getting involved.

One of my favorite highlights was the closing session with Geena Davis as the keynote speaker. A world-class athlete who qualified for the Olympic trials in archery, member of the genius society Mensa, and founder of her non-profit for women and girls, Geena Davis Institute on Gender in Media, this powerful woman is a pillar for fresh perspectives.

During her segment of the conference ‘Geena Takes Aim: Empowering Women’ Geena shared her own journey as an actor and how evolving our gender identities can start in film. She advocates for gender equality in entertainment in order to address the biases that we form at an early age about women and their representations in society. Keep an eye out for a more in-depth story on the amazing actor and woman.

Another highlight from the conference was Monday afternoon’s panel She Speaks: Innovation, New Ideas in a New World With PMA’s President and CEO Cathy Burns, moderating the event. Panelists Judith Spires, President and CEO, AG Supermarket Holdings
; Jill Kanin-Lovers, Corporate Director, Heidrick & Struggles/HPF and 
Sureena Thiara, Partner, Manseena Orchards and Far Horizon Crop Insurance, shared the hurdles and achievements that marked their growth as women leaders. From long standing organization cultures, generational differences, and male dominated industries and hierarchies, these women fueled change in their respective roles and brought a new side of the female leader and what that looks like today.

The roles in the group were also across the board, with guests describing themselves in a host of different areas...

• 60% describe themselves as growers/packers/shippers
• 30% describe themselves as emerging leaders
• 48% describe themselves as in middle of their careers
• 20% describe themselves as executives 

Within these overlapping percentages, more than 10 retailers attended the event. 

If you missed out on this year’s conference, I suggest you mark your calendars now for the 2016 Women’s Fresh Perspectives Conference.

Women's Fresh Perspectives Conference

ONTARIO, CANADA - Jamie Klayman, logistics industry veteran of more than eight years, has been promoted to Vice President of Scout Logistics Corporation, North America.

Having served the company as Logistics Coordinator for more than four years, Klayman is credited with having been an integral player in the company’s recent accreditation as one of Canada’s 50 Best managed Companies. He will now be responsible for continuing to build sales in the North American market. He will be tasked with a specific focus on the transitioning of interstate loads from the Western states and Texas to major international produce hubs throughout North America.

"With Jamie's promotion, Scout is looking forward to continued growth throughout the North American market and a renewed focus on interstate freight," Lorne Swartz, President of Scout Logistics Corporation, said in a press release. "He is well known and respected in the industry, and his outstanding ability to manage both client and carrier needs seamlessly only strengthens our position in this market. His promotion is well deserved, and is a result of his hard work and outstanding contributions to Scout's exceptional growth."

According to the release, Klayman has also served as Sales Manager - U.S. Freight, where he successfully led his team to record sales for 2014, and the company anticipates he will continue to be successful in this new position. Klayman himself commented that he is excited for the opportunity to increase Scout Logistics presence in the U.S. market.

WENATCHEE, WA - With the California and Washington cherry seasons kicking off early this year, Stemilt Growers is ramping up the company’s cherry program with new elements to its portfolio and plans for upcoming promotional opportunities.

“In California, Stemilt has some of the most beautiful Brooks variety cherries as some of our first fruit. This variety is known for having low acids, which bring out the sugar when eaten. They are picked with nice color and have great size,” Roger Pepperl, Marketing Director, tells me.

When I ask Roger what’s new? He has plenty to tell me.

One of the newest varieties to the Stemilt’s California cherry program is the Royal Hazel, a cherry with a great eating quality and consistency that buyers can plan to see more of in the future. 

“In addition, we have a new variety to our Washington program, which buyers will be hearing much more about in the future. The Skylar Rae® cherry, which is a Stemilt exclusive, presents a yellow cherry with heavy blush. Skylar Rae® is the firmest and crunchiest cherry we grow,” Roger says. “A lot of new acreage is going into Skylar Rae as we speak.”

Skylar Rae® is known for sugars that range from 23 brix and higher on the average. Roger tells me that this is the sweetest cherry you will eat and is the first cherry since dark sweet and yellow cherries to have its own PLU number. This is the third sku to the cherry category.  

“What a breakthrough. We will have limited numbers of this new cherry from June 7th to July 10th this year with the crop expanding the next 5 years and beyond,” he says.

Stemilt will also have good volumes of the Coral variety which is a great eating cherry as well, and does well in areas that are too hot for Bings to grow in. The company will also have good volumes of the Bing variety.

In Washington, Stemilt has Sequoia and Chelan in its early selections. In the late selections Stemilt has two varieties that the company has exclusive licenses for in the U.S. called Staccato and Sentennial which are the two latest bloom-to-harvest cherries that the company grows at extremely high elevations. The company is also planting a sizable amount of Skeena cherries in the famous Stemilt Hill district to continue to give the consumer a great eating experience during the Kyle’s Pick program.  

Stemilt also has a large amount of Rainier Cherries, which are custom packed on dedicated Rainier cherry lines.  Stemilt now has 3 optical sizing lines in California and Washington making them one of the most up-to-date packers in the country when it comes to technology.  

So, what sets Stemilt apart from its competitors?

“We have the longest availability from the early crop in California to the last to pick in Washington. Our cherry program has some great components to it like the Kyle’s Pick program that starts right after July 4th and features 10-row cherries of only the best varieties,” Roger tells me.

To qualify for the Kyle’s Pick program, cherries must be firm with high sugars to make the designation that Kyle Mathison endorses.  

“We are also famous for our “Half a Mile Closer to the Moon” program in August, which are select orchards that are above a half of a mile above sea level and are cherished for their dessert qualities and flavor,” he continues. Many of these cherries are from the famous Amigos orchard that Kyle Mathison and his family own and nurture.  

Stemilt is also known for its post-harvest cooling program. Stemilt has a famous program of mobile hydro coolers that they have in place in select locations among its growing regions to ensure that cherries are cooled within an hour of harvest in most cases.  

“Then we hydro cool again at the plant and have a Jet-Cool program for packed boxes which rapidly pull down temperatures before loading. All this attention to detail delivers the best consumer experience,” Roger says.

This year the best times to promote are the week before Memorial Day and even the full 10 days prior. Also, two weeks prior to July 4th on Dark Sweet and Organic Dark Sweets is a great time to advertise. Rainier Cherries should be advertised the week before July 4th and the week after July 4th. Kyles Pick programs for Dark Sweets for the 3 weeks after July 4th and the Half Mile Closer to the Moon program for Dark Sweets can be advertised the first two weeks of August this year. Stay tuned as we follow Stemilt through its Northwest cherry program.

Stemilt Growers

MEXICO - Our neighbors to the south reportedly experienced a mid-level earthquake yesterday afternoon, with a trailing shake up a couple of hours later.

The earthquake’s initial epicenter was about six miles east of Palomares, near the Oaxaca and Veracruz border, according to the United States Geological Survey (USGS). While the preliminary magnitude was estimated at a 6.1, the official restered strength reached a 5.5 on the Richter Scale. The ripples and shakes were reportedly felt further than 110 miles away in the state capital (also named Oaxaca).

According to the USGS, nearby cities that would have been affected include:

• Palomares, Mexico - 10km (6 miles) away from epicenter.
• Matias Romero, Mexico - 29km (18 miles) away from epicenter.
• San Jeronimo Ixtepec, Mexico - 63km (39 miles) away from epicenter.
• Union Hidalgo, Mexico - 75km (47 miles) away from epicenter.

The state government of Oaxaca stated on its website that while it will continue to monitor the affected areas, particularly where it was felt most strongly, there have been no early indications of any property damage or injuries.

Stay tuned to AndNowUKnow as we continue to observe any potential effects this earthquake may have.

MINNEAPOLIS, MN - Supervalu has released its Q4 2015 financial report, announcing net sales of $4.36 billion and net earnings of $36 million.

“We finished the year with a strong quarter, highlighted by positive identical store sales at both Save-A-Lot and Retail Food as well as the transition of the first stores in our important new relationship with Haggen,” said President and CEO Sam Duncan. “Overall, fiscal 2015 was a year of strategic investment in all three of our business segments and I’m pleased with how these investments have positioned us for growth in fiscal 2016.”

A major sector of the sales increase was from Supervalu’s Save-A-Lot banner. Net sales for Save-A-Lot were $1.14 billion, an increase of 13.7 percent. The increase in Save-A-Lot operating earnings as a percent of sales was primarily driven by a lower level of price investment, according to the report.

“Save-A-Lot's Q4 results were, again, led by meat and produce where ID sales were strong in both corporate stores and for licensee purchases. The lower level of cost inflation was the primary driver of the quarter-on-quarter change in ID sales compared to Q3,” Duncan said in a conference call with investors.

Other highlights from the report include: 

• Q4 2015 net earnings from continuing operations were $66 million.
• Gross profit for the fourth quarter was $661 million, or 15.1 percent of net sales.
• Save-A-Lot operating earnings for Q4 were $47 million, or 4.2 percent of net sales.
• Q4 retail food net sales were $1.22 billion.

Duncan continued that Supervalu’s goal in 2016 is to open up 100 new stores on a gross basis, with approximately 60 of these anticipated to be corporate stores. He also expects that Save-A-Lot will be entering several new markets.

As of 6:54 PM EDT on April 28, Supervalu's stock was down $0.81 to $9.89, a decrease of 7.57%. 

Stay tuned to AndNowUKnow for all your latest financial updates in the industry.

Supervalu

YAKIMA, WA - Is it, or is it not a GMO product?  That’s the question swirling around the popular non-browning Opal Apple marketed by FirstFruits Marketing. Keith Mathews, CEO of FirstFruits, tells me that no, the variety is not genetically modified but actually the result of cross-breeding different varieties to bring together the best attributes for the apple.

If you don’t believe Keith, then believe the Non-GMO Project Verified certification given to the apple just this past year. Non-GMO verification is the only independent verification in North America for non-GMO foods.

About a year ago, the press started picking up news about a new GMO apple that does not brown and many mistook it for the Opal. “So, we turned to the Non-GMO project, an exceptionally high-level scientific evaluator, to help us verify our apple,” said Keith.

“Opal was actually first developed in Czechoslovakia 19 years ago. Ralph Broetje, Founder of Broetje Orchrds, came across the apple and decided to try it out in the U.S.,” Keith tells me.  “When you move micro-climates there are a lot of elements in the tree that may not initially adapt well to the consumer base and the geography of the land. In the U.S., we tend to like apples that are about 3 inches in diameter with a high flavor profile.”

Every tree is the product of a selected root stock, Ralph notes, which can then be improved through grafting to make it a more successful product in the marketplace. “It took some time to find the right mix. Essentially 5 years ago everything came together and allowed them to begin growing the apple toward commercial production,” he says.

For the first 4 years FirstFruits saw smaller volumes of the Opal apple but as it entered the 2013 and 2014 seasons, the company decided they were in a place to roll out the variety in significant volumes.

The Opal apple maintains the characteristics of one of its parent varieties, the Golden Delicious, which does not brown as quickly as other apples. Scientists bred the apple by hand moving pollen to the female plant in order to produce something new… in this case, the Opal. 

“The precise methods of cross-pollenating finally created the apple whose dominates are Topaz, a variety typically grown in Europe, and the golden delicious apple,” Keith tells me.  “The apple has a very delicate and unique flavor, that we have heard rivals the Honeycrisp. It also travels well, which was a key attribute when we were evaluating the Opal.”

Broetje and FirstFruits own the exclusive Northern American rights to grow pack and sell Opal apples. The orchards are found along the Snake River in the eastern corner of Washington State.

FirstFruits Marketing

Opal Apples

CORAL GABLES, FL - Fresh Del Monte Produce has reported its financial results for the first quarter of 2015. Net sales for the first quarter of 2015 were up to $1.01 billion, from $982.3 million in the first quarter of 2014. Net profit, however, was down slightly to $100.4 million.

The increase in sales for the quarter was due to higher net sales in the Company's banana and other fresh produce segments, primarily driven by increased sales volume in North America. 

“We are pleased to report that we continued to make progress toward our long-term initiatives during the first quarter of 2015, with positive growth in our banana business, increased volume in several product lines in our other fresh produce business and strategic improvements in the prepared food business in Europe,” said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer. “However, we faced a number of challenges that reduced our ability to deliver optimal earnings.” 

Abu-Ghazaleh noted higher fruit procurement costs in the banana segment, lower pineapple yields, and quality issues for both tomatoes and grapes as hindering factors for the company’s earnings.

“Our global market reach and logistics flexibility allowed us to better manage these factors. Additionally, we faced unfavorable year-over-year exchange rates. The positive trends, initiatives, and strategic steps to improve profitability during the quarter mitigated the setbacks, and I am confident we will continue to deliver sustainable growth over the long-term,” he added.

Other highlights from the report include:

• Earnings per diluted share were $0.80 for Q1 2015, down from $1.04 for 2014. 
• Comparable earnings per diluted share were $0.83 or Q1 2015, down from $1.00 for 2014.
• Gross profit for Q1 2015 was $100.4 million, down from $106.7 million in 2014.
• Operating income for Q1 2015 was $56.3 million, down from $65.2 million in 2014. 
• Comparable operating income for Q1 2015 was $58.0 million, down from $63.1 million in 2014.
• Net income for Q1 2015 was $42.5 million, down from $58.6 million in 2014.
• Comparable net income for Q1 2015 was $44.2 million, down from $56.5 million in 2014.

As of 1:45 PM EDT, Fresh Del Monte's stock was down $2.73 to $37.95, a decrease of 6.71%. 

Keep checking in with AndNowUKnow for continued financial updates.

Fresh Del Monte